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RP eyes huge spending for infra program


MANILA, Philippines - The government is looking to invest trillions of pesos for infrastructure projects in a bid to perk up the economy amid global uncertainties. Socioeconomic Planning Secretary Ralph Recto on Wednesday said that under the updated 2008 to 2010 Comprehensive and Integrated Infrastructure Program (CIIP), the government is seeking P2 trillion from this year to 2010 to finance these projects. He noted that for the first half of the year, the Philippine economy posted a 4.6-percent expansion, a far cry from its above 7-percent improvement in the same period in 2007, at a time when public construction also slowed. "What if public construction posted the same growth as in 2007, at 43.4 percent? Our GDP growth in the first half of 2008 would have been 6.9 percent. Our GDP growth targets are achievable so long as our infrastructure programs deliver," he said. The government’s official economic target for this year is a growth between 5.5 percent and 6.4 percent and 6.1 percent to 6.7 percent in 2009. Of the total fund requirements, the transportation sector has the highest share at 38 percent or P755 billion, and followed by power electrification, P611 million. Water resources will get P347.53 million; social infrastructure, P167.91 million; communication, P56.49 million and relending program, P36.69 million. Recto added that the government is eyeing to finance P1.5 trillion of the total amount, while the private sector is seen to shoulder P613 billion of the investment requirement. The P94 billion will be funded by the government owned and controlled corporations; P26 billion from government Financial Institutions; P10 billion from local government units and P118 billion through other sources. Of the whole transport sector, Recto said roads and bridges and rail transport with shares of 44 percent and 39 percent respectively, comprise the biggest investment requirement "Road and bridge projects are being pursued in support of the government’s thrust of linking the entire country through an effective transport network that would open up new economic opportunities, reduce logistic costs and increase access to social services. Roads are being linked to RORO ports," Recto said. He said that owing to the huge investments needed for transport projects, the government will continue to tap the private sector in the development of priority projects under the BOT law. The Tarlac-La Union Toll Expressway, Panguil Bay Bridge, Manila-Cavite Toll Expressway Extension, Daang Hari- SLEX Link Road, South Luzon Expressway Extension Project, and Southern Tagalog Arterial Road Project, among others, are being proposed for private sector financing. Recto added that the government plans to implement an integrated urban rail-based mass transport system through projects such as the LRT Line 1 North Extension (Closing the Loop). To further provide efficient mass transportation, the capacities of existing railway lines will be increased through projects like MRT3 Capacity Expansion, and existing rail facilities will be extended through LRT Line 2 East Extension to Masinag and Line 1 South Extension Project. "Metro Manila is already crowded. It will be more congested in a decade, as more people flow in from the provinces. Clearly, we don’t want to see EDSA turned into a giant parking lot," Recto said. In line with decongesting Metro Manila and spreading development in the countryside, other projects lined up are the Northrail-Southrail Linkage Project, Phase 1 (Caloocan to Alabang) and Phase 2 (Alabang – Calamba), North Rail Project Phase 1, Section 1 (Caloocan-Malolos) & Section 2 (Malolos-Clark), Mainline South Railway Project (Southrail) Phase IA (Calamba- Lucena), Phase 1B (Lucena-Legaspi) & Phase II (Extension to Sorsogon). GMANews.TV
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